Financial Disclosure Practices of Private Commercial Banks in Bangladesh: A Compliance Study

Authors

  • Zarin Tasnim Rahman Department of Accounting and Information Systems, Begum Rokeya University, Rangpur (BRUR), Bangladesh
  • Appel Mahmud Associate Professor, Department of Accounting and Information Systems, Begum Rokeya University, Rangpur (BRUR), Bangladesh

DOI:

https://doi.org/10.51983/ajms-2022.11.1.3088

Keywords:

IFRS, Compliance, Financial Disclosure, Private Commercial Bank

Abstract

The study is based on analysis of compliance of prevailing accounting standards for the Private Commercial Banks in Bangladesh. This paper empirically analyzed the performance of disclosure in compliance with IFRS 7. 6 listed private banking companies taken as sample. To fulfil its objective, the annual reports and documents of all the sample banks are examined and obtained data from surveys. Since all of them are required to comply with the standard of IFRS 7 to disclose relevant financial information to uphold the stakeholders’ interest, the extent of deviation from the standards in terms of disclosure practice is also examined. The study found that average compliance of the standards is 72.77% by the banks. The highest rate of compliance found from individual compliance status of those companies is 80% with a negative deviation from average. However, the practices of disclosure in reporting are considerably good. Therefore, it is recommended that the regulatory authority and central bank of Bangladesh should mandate the compliance of IFRS 7 for disclosure in financial reporting.

References

Ahmed, A. A. & Ahmad, M. (2009). An Empirical Analysis of the Performance Measurement of the Disclosure in Financial Reporting: A Study of Banking Sector in Bangladesh. Proceeding’s 2nd CBRC, Lahore, Pakistan.

Bischof, J. (2009). The Effect of IFRS 7 adoption on bank disclosure in Europe. Accounting in Europe, 6(2), 167-194.

Bhuiyaan, M. N. U. & Kamal, M. Y. (2003). Standardization of Accounting and Financial Reporting Practices in the Banking Sector in Bangladesh: An Evaluation of the Implementation of IAS 30 by the Banks in the Private Sector. Journal of Business Studies, 24(2).

Dawd, I. (2018). Aggregate Financial Disclosure Practice: Evidence from the Emerging Capital Market of Kuwait. Journal of Applied Accounting Research, 19(04).

Hasan, M. T. & Hosain, M. Z. (2015). Corporate Mandatory and Voluntary Disclosure Practices in Bangladesh: Evidence from Listed Companies of Dhaka Stock Exchange. Research Journal of Finance and Accounting, 6(12), 2015.

Hodgdon, C., Tondkar, R. H., Harless, D. W. & Adhikari, A. (2008). Compliance with IFRS Disclosure Requirements and Individual Analysts’ Forecast Errors. Journal of International Accounting, Auditing and Taxation, 17, 1-13.

Hossain, M. I. (2014). Regulatory Compliance of IFRS7 of the Banks’ Disclosure: A Case Study on Nationalized Commercial Banks of Bangladesh. 13(1).

Hossain, M. K., Niaz, A. Z. M. & Huq, S. M. (2015). The Application and Disclosures of IFRSs and IASs by the DSE Listed Companies of Bangladesh. World Journal of Social Sciences, 5(3), 157-175.

Hossain, M. S. & Baser, A. A. (2011). Compliance of IAS 30: A Case Study on the Specialized Banks of Bangladesh. Research Journal of Finance and Accounting, 2(4).

Kamardin, H., Ishak, R., & Zango, A. G. (2015). International Financial Reporting Standards 7 (IFRS 7) Compliance by Listed Banks in Nigeria. Asian Journal of Applied Science, 03(06).

Mahmud, A., Ding, D. & Hasan, M. M. (2019). Disclosure of Corporate Social Responsibility Practices. Journal of Accounting and Finance in Emerging Economies, 5(2), 2019.

Mahmud, A., Ding, D., Kiani, A. & Hasan, M. M. (2020). Corporate Social Responsibility Programs and Community Perceptions of Societal Progress in Bangladesh: A Multimethod Approach. Sage Open, 10(2).

Mahmud, A., Ding, D., Ali, Z. (2021). An Investigation of Employee Perception of Micro-Corporate Social Responsibility and Societal Behavior: A Moderated-Mediated Model. International Journal of Emerging Market. DOI: 10.1108/IJOEM-02-2021-0266.

Rotaru, C. S. F. A Review of Disclosure Practices of Latin American Companies. Academy of Business Disciplines Journal.

Sufian, M. A. (2016). The Quality of Mandatory Disclosure by Listed Companies in Bangladesh.

Taplin, R., Tower, G. & Hancock, P. (2002). Disclosure (discernibility) and Compliance of Accounting Policies: Asia-Pacific evidence. Accounting Forum, 26(2).

Vojackova, H. (2015). Financial Instruments: Meeting Disclosure Requirements Defined by IFRS 7, In Energy Industry in The Czech Republic. 16th Annual Conference on Finance and Accounting, ACFA Prague 2015.

Downloads

Published

25-04-2022

How to Cite

Tasnim Rahman, Z., & Mahmud, A. (2022). Financial Disclosure Practices of Private Commercial Banks in Bangladesh: A Compliance Study. Asian Journal of Managerial Science, 11(1), 17–22. https://doi.org/10.51983/ajms-2022.11.1.3088